Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a
A) short-range time horizon
B) medium-range time horizon
C) long-range time horizon
D) naive method, because there is no data history
E) all of the above

Question

Quizplus · Accepted Answer

Forecasts used for these types of planning often involve a long-term time horizon in order to account for changes in the market and technological advancements that may impact the success of the product or investment. Short-range and medium-range forecasts do not typically provide enough information for these types of decisions, and the naive method is not appropriate when historical data is available.

Forecasts Used for New Product Planning, Capital Expenditures, Facility Location